Why is an EPC important?
An EPC is an energy performance certificate, this measures how energy efficient your home is and what your home could potentially be with works carried out. This gives an indicator to the cost of your bills when it comes to power, i.e. a higher rating could be cheaper, while a grade of E or below, could be more expensive to run.
So does an EPC affect my mortgage?
The short answer is yes. When it comes to lower ratings some lenders will factor in the work needed to bring the rating up to an E minimum and therefore bring the valuation down to include the price of the works.
According to Government proposals, all homes by 2035 will need to have an EPC rating of C or higher. This means for some that it may be harder to obtain a mortgage and possibly more expensive.
Furthermore, if you are looking for a buy-to-let mortgage, due to new legislation which states a rental property needs to have an EPC of E or higher, you may need proof of the EPC to give to the lender. If it does not meet the standards, the lender may refuse to give you the funds needed.
What about green mortgages?
Green mortgages are there as incentives to those who are improving their EPC rating or moving into a more energy efficient home. They may be able to apply for one of these mortgages and could earn cashback or possibly have a lower interest rate. Speak to Fingerprint Financial to see if you could qualify for one.
If you have any questions surrounding EPC’s, call the team today on 01233 501601.